Legal action threat to Bupa on Powys care homes
A council is considering legal action against a care provider for failing to inform the authority it was selling off a number of care homes.
Bupa, which is responsible for managing 12 Powys County Council-owned care homes, announced on Wednesday that it has sold more than 122 of its homes to another company.
Powys County Council leader Rosemarie Harris said the authority had received no communication ahead of the sale and is now investigating whether it is lawful.
The Bupa-managed Powys care homes include Llys Hafren in Welshpool, and Plas Cae Crwn in Newtown.
Councillor Harris said they are seeking a meeting with Bupa bosses over the situation.
She said: “We have not had any formal confirmation from Bupa regarding this matter and have not been involved in discussions. We consider that Bupa’s actions are unlawful and we are considering taking legal action.”
Councillor Harris moved to reassure residents of the homes that their service will not change in light of the situation.
She said: “We are seeking an urgent meeting with Bupa but we do not anticipate any change to service delivery.
“All services commissioned by the council with Bupa are under contract and we will be seeking assurances from the company about future operations and have requested an urgent meeting with the company regarding today’s developments.”
On Wednesday morning it was announced HC-One had completed the £300 million buy-out of 122 Bupa care homes in total, making it the biggest UK operator of residential homes. The company was formed six years ago out of the collapse of Southern Cross, and is run by former NHS doctor Chai Patel.
It is expected they will expand their portfolio to around 350 homes with 22,000 care beds in the deal.
In 2014 it expanded when it was acquired by investors Court Cavendish, Formation Capital and Safanad.
Dr Patel said: “We are building an organisation that residents and families can rely on, one which can withstand future uncertainties.”
Bupa will still retain around 150 care homes and six retirement villages, with further schemes under construction.
Posting on Facebook, Montgomeryshire MP Glyn Davies said he would be looking to meet with HC-One to discuss its plans for the future.
He said: “Don’t know if it’s good, not so good or bad news - probably good.
“HC-One – which rose from the ashes of the Southern Cross collapse in 2011– is taking over all 122 Bupa care homes across the UK. Not sure how this deal works with Powys Council which did ‘due diligence’ on Bupa before agreeing the deal over 10 years ago. Anyway, social care is one of my interests. Hoping to speak with HC-One in next day or two. Looking for reassurance. Frail elderly in care must never be forgotten.”
A Bupa spokesperson said: “We always make it our priority to let our residents, employees and regulators know first when we have an announcement. As part of today’s announcement we contacted Powys County Council and we will continue our discussions as we move forward with the transfer of homes.”
